Strategic International Marketing

Nike offers a diverse range of goods and services to its consumers both internationally and domestically. The service and product quality of the organization is the primary contributor to its success and high-profit margins. Furthermore, this demand mixing principle is closely related to the outputs of the enterprise, which are then delivered to the intended consumers. Such a wide range of merchandise includes the sale of specialist athletic goods, apparel, and clothes. As a result, all sports fans have the ability to choose and experience a wide range of high-quality products from the company (Nike Inc. 2015). Its other leading and popular product categories also include a broad variety of shoes and cleats. It also happens that Nike’s first items to run were shoes. Further, the firm commands a leading market in the field of sportswear. It is from these shoes, especially that Nike realizes its maximum returns. For every sport type, the company offers a unique kind of shoe. One of the renowned inventions is the light cricket game footwear. Other sporting undertakings that are significant consumers of the company’s current products include ice hockey, soccer, athletics, lacrosse, basketball, and baseball (Goi 10). These games form a large consumer base in the purchase of footwear especially. The basketball game has over the years been a major development focus by Nike. The firm continues to add to the footwear product line. For instance, the Nike SB and NXY shoes were presented in the market in 1987 for the first time. Moreover, the firm advanced the XX3 Air Jordan in 2008. This shoe has been praised for its high performance and the creative idea that it was specially designed to adapt to the environment (Dominici 18).

Also, Nike also engages in the sale of items meant for recreational use. These activities include outdoor uses such as walking, racing shoes, aquatic undertakings, cheerleading, lacrosse, as well as wrestling (Nike Inc. 2015). Other entertainment sectors that subscribe to the business’s items are football associations, volleyball, cycling, golf, tennis, cycling, wrestling, and skateboarding.

Likewise, the organization designs products that fit all genders including kids. The Nike brand further focuses on women’s and men’s training. For example, the American football and baseball enjoy a broad range of men’s training Nike wares. Sports enthusiasts are not left behind since the company designs sport-inspired products that can be worn casually and used as part of people’s lifestyles (Dominici 18).

In addition, Nike produces a broad category of apparel. These are manufactured for large-scale sports organizations, small game enterprises, individual players, and the huge fan base. They are supplied with different types of shorts, shirts, baselayers, and jerseys. As well, the consumers receive more items like gloves specially modified for specific consumers such as goalkeepers of different games. Other broad-ranging products sold by Nike include performance accessories and equipment. The items consist of gaming balls, bags, socks, timepieces, protective gear, digital devices, eyewear, golf clubs, and bats (Nike Inc. 2015).

Another aspect which contributes immensely to the ever-growing market range of recent products is innovation. These cutting-edge products are unique to the firm as they give the company a competitive edge over their other opponents. First, the cricket shoe which was introduced recently in the global market is such a considerable milestone. It is 30% lighter as compared to other cricket footwear. The firm has added the Air Zoom Yorker as well as the Air Max to the presently developing Nike 6.0. Product Line (Goi 12).

Besides, the business has recently come up with smart products. These items can be connected to the iPod nano which leads to the combination of Apple Inc. devices and those of Nike. Customers can, therefore, customize as well as design Nike’s products to suit their needs. This feature has, in turn, attracted a great deal of audience. Further, the consumers get value for their purchased goods (Peters 2010). The Nike shoe can track a corridor performance that is connected to these Apple Inc. products thus generating useful information.

Similarly, customers can now customize and design their desired footwear using the Nikeid. This sub-brand allows them to modify the fabric and color on selected areas of these shoes. As well, the consumers achieve different designs both in large and small quantities. To the relief of the product users, they do not require to design the shoes by themselves. Instead, such information regarding the offers, customization, and design processes is provided on Nike’s website. The customer is only required to select the pre-made design option on the site and subsequently receive the relevant instructions (Dominici 18).

Moreover, in the year 2004, Nike established the SPARQ training division which is a program through which the company sells its products. Such commodities include the cross-training apparel, footwear, and equipment within the local U.S market. Further, the firm designs these shoes in a manner that their weight is considerably reduced. The footwear contains lunarlite foam and flywire which makes them lighter and comfortable for use in training and running. The shoes are also innovatively fitted with soles that are fully air-cushioned (Peters 2010). They are as well fitted with external heel counters, technological fit frames to enhance their stability, and shock-absorbing crashpads. An example of such a shoe is the Vomero Air Zoom which is a footwear specially designed for running and was first introduced in the market in 2006. Presently, the shoe’s 11th generation is already on sale.

The company has widely diversified brands. Its portfolio of products ranges from NIKE Brand to its subsidiaries which include Converse, Hurley International, and Jordan. Additionally, the business uses other trademarks such as Nike+, Air Force 1, Air Max, Air Jordan, Nike Pro, Nike Golf, Nike Blazers, Nike Dunk, Foamposite, and Nike Skateboarding. Besides owning Nike Bauer between the year 1995 and 2008, the firm was the previous owner of Umbro and Cole Haan. Secondly, the organization supplies other subsidiary manufacturers with various plastic products. These comprise the NIKE IHM, Incorporation which specializes in the production of air-cushioned footwear soles. The Jumpman Brand is used by the Nike’s Jordan trademark to design, license, and distribute casual and athletic footwear, accessories, and apparel whose primary focus is basketball. Similarly, Converse plays an equal role to Jordan but, deals with casual sneakers which are branded under Chuck Taylor, One Star, All Star, Jack Purcell, and Chuck Taylor (Nike Inc. 2015).



Promotion strategies

The internet is today transforming the world into a small village. It is a powerful tool that connects Nike to the global market. It also helps to preserve a strong balance between existing as well as new customers. The company invests a lot of resource in employing promotional mix tactics to maintain the noble image of the brand as well as constant communication with the targeted audience or customers (Dominici 18). Such publicity strategies employed by Nike include the following:

Advertisements

Promotion of sales

Direct marketing

Public relation

Social media

Personal sale of products

First, advertisement forms the greatest contributor to the ability of Nike to reach out to its buyers. The business depends heavily on the different forms of adverts. These include endorsing celebrities, sports teams, and other accomplished athletes. For example, Nike uses celebrated footballers such as Roberto Carlos and Ronaldo as its brand ambassadors. These Brazilian players together with other celebrities like Tiger Woods, LeBron James, and Armstrong Lance of golf form part of the company’s endorsements strategy with a view to promoting its commodities (Deng 61). To reach out to other countries, Nike commissions famous individuals of the given state as its brand emissaries. An example of such a case is the endorsement of Bhutia Baichung who is the captain of the Indian football. As well, the company remains consistently sensitive to the offers it presents to any existing market environment. Their thoughtfulness is seen whereby the firm makes virtually no advertisements on their prices. Secondly, the use of print adverts remains at the core of Nike’s strategies. It is a simple method but, it conveys strong messages to consumers. Further, the business publishes a series of adverts in newspapers. In general, their adverts are always above the user expectations and fulfilling since they make a clear demonstration about the different products (Deng 92).

Thirdly, in an attempt to create further awareness of its new offers in the market, Nike makes use of billboards and commercials. To a great extent, the company relies on promoting its products through the internet. It plans to minimize the print and television adverts completely and instead focus more on social media marketing. There is, however, the danger that the form might end up creating an online ecosystem strategy of marketing considering that not all individuals have access to the internet (Nike Inc. 2015).

Likewise, Nike engages in sponsorship agreements. Such contracts are reached with event organizers, college, and professional athletic teams. For instance, Nike supports such events as Hoop It Up, the NBA international basketball championships, and marathons among others. Through such competitions, the company gets an opportunity to showcase its wide variety of kits and sportswear in the various gaming activities. Since it enjoys a great level of continued success and consistently high revenues over the years, Nike has the advantage of building trust easily with interested parties. Besides, the firm is one of the most globally recognized businesses and its trademark is highly rated. It thus has the latitude of initiating many binding strategic alliances and other organization, and teams can acquire sponsorships from the company (Goi 22).

Further, Nike has recently shifted its attention to the use of social media marketing. The organization intends to channel more resources into these networks in order to reach a bigger population of its customers. Since the cost of publicizing social media content is quite great, the company looks to employ higher budget allocations to these online arenas. To create more impact on its global fan base, Nike promotes its products extensively through numerous online campaigns which are conducted over Instagram, YouTube, Facebook, and Twitter, which have millions of followers and subscribers (Deng 61). These internet-based platforms are especially suitable to promote the business’s new products in the market. Nike also engages the social media users in competitive activities aimed at recommending a particular type of product to as many online friends as possible. These campaigns encourage the youthful population especially as they attempt to reach the maximum number of “Facebook likes” for instance. The persons who emerge as winners are gifted with the Nike item on auction or scholarships (Dominici 18).

Regarding Nike’s promotion of sales, the company employs special offers and coupons to reach out to its target customers. This marketing mix strategy is founded on the idea of perceived benefits by consumers. The consumers feel motivated to go for a given product on the account that they will either save of costs, get an additional, or new item out of the ordinary. As a result, this motivation drives demand thus bringing more Nike buyers on board (Nike Inc. 2015).

Public relation marketing mix technique aims at improving the brand’s general perception. The method further looks to promote its association with the public in the company’s attempt to solve particular social problems within the society. However, Nike rarely engages in these activities and instead sponsors only a few undertakings relating to building its public relation. Some of these engagements that it participates in include the use of green technology and workshops to address social problems (Peters 2010). Further studies have indicated that the firm prefers to use other marketing strategies other than the public relation IMC strategy. The company pointed out that it is currently channeling more resources into social media marketing which seems more fruitful and workable (Dominici 18). Also, Nike sponsors events relating to charity and other public relation endeavors. In doing so, the company reaches out to more potential consumers on a global scale. They hence see the company from a philanthropist perspective and as a business which is fully committed to addressing some social problems.

Direct marketing is involved primarily in the promotion of Nike’s new products. The company advertises such items which have just been introduced in the market intensely and proactively. In this case, however, the firm employs salespersons who are close and loyal to the brand. They are then tasked to approach selected individuals or organizations within the various segments of its target market. For example, Nike approaches several sporting organizations in some colleges to promote its commodities further. To motivate clients to buy the firm’s items and come up with more lasting relationships with the target consumers, Nike employs direct marketing IMC technique (Deng 61).

The personal selling approach taken by Nike entails careful training of its stores’ staff members. The trained personnel thus get empowered to improve the customer service and experience. First, the team is enlightened on the company’s services as well as products. Being educated, they can offer informed guidance to the various customers regarding the available range of commodities. Secondly, they offer personalized services to buyers and help them chose the right product for their needs. They can also persuade sales by helping customer’s make improved decisions. Subsequently, the business creates strong relationships with its buyers (Goi 19).

Distribution/ Placement structure

Nike uses the branding concept as one of the broad marketing strategies to make its products reach the maximum number of customers. The company uses a highly aggressive and comprehensive promotion approach which makes use of all the media and tools of marketing. It has numerous outlets across the world from which customers can access Nike’s services and products. Also, the marketing mix plan thus clearly outlines the various venues where the firm’s apparels, sports shoes, and equipment are distributed or sold (Nike Inc. 2015).

The market range of the company is vast. Further, Nike commands its presence in about two hundred countries. Its products, especially shoes, are similarly approved by all Nike stores as well as other numerous multi-brand outlets across the world. The organization also boasts of its nearly 20, 000 retail points in the United States. In order to reach a broader market internationally, the business depends on its licensed dealers, independent distributors, and subsidies to sell its goods and services. It has established manufacturing units, operational entities, as well as customer service personnel globally and in Asia. The company has long-term plans that are underway to expand its market base by licensing more dealers and open up even more stores. In turn, Nike will reach more customers and maximize its consumers (Dominici 18).

In the global market, the organization operates in areas such as Western Europe, Greater China, North America, Emerging, Markets, Eastern and Central Europe, and Japan. To cut costs of manufacture and general logistics, as well as improvement of distribution efficiency, Nike employs outsourcing strategies for its products. It subcontracts countries such as China and other developing states like Vietnam. In India, for instance, Nike uses the concept of densifying stores within the cities to gain a competitive edge against its major competitors which include Reebok, Adidas, and other rival brands (Deng 61).

The list below shows Nike’s specific outlets used to distribute the company’s products. They are arranged in terms of the significance of its distribution strategy.

Retailers (most significant)

The official online shops

The exclusive Nike’s offline stores

Nike Online sales through the E-commerce platform

The NikeTown retail stores are impressive masterpieces which create an overwhelming Customer experience. They are smacked in key cities of selected countries. First, the retail branch is more of a city that is animated and characterized by the spirit of Nike. All the brand products can be found in the outstanding store thus giving potential buyers the complete shopping experience besides presenting as a wholesome collection of shoes. In addition, the stores are fitted with a gallery of multimedia simulations, high ceilings, suspended chandeliers, themed images, and dramatic lighting giving the customer a memorable scene of Nike’s products (Peters 2010).

Secondly, Nike’s contracts a series of flagship-labeled stores in various towns to reach out to its customers. These shops are stocked with large volumes of the firm’s products. Buyers can thus access a wide range of commodities from these outlets. Thirdly, Nikeid is a renowned online store. Buyers from all over the world can access the Nikeid website at the comfort of their homes, for instance, and request for their customized service. Presently, online shopping has gained popularity due to its convenience. The company, therefore, seeks to tap into these internet platforms to reach its consumers internationally (Nike Inc. 2015).

Nike’s large retail discounted shops are strategic stores for the organizations. The online stores also engage in timely and bulky discounts especially during the peak seasons such as international holidays and breaks. They operate under the forces of supply and demand (Goi 24). This is in the sense that they serve those locations which receive a high turnover of customers. Due to the high demand for Nike items, the buyers are served at discounted prices. As a result, the company ends up attracting customers in their millions and catching far-reaching attention while still maintaining its high-profit margins.

Further, the firm has tapped into the current trend of E-commerce platforms. Such shopping arenas have recently become popular among most consumers due to their high reliability. Nike customers can, therefore, use such websites as Amazon, Flipkart, eBay, and Alibaba to access the desired services and products (Dominici 18). In availing the business’s commodities on these platforms, Nike showcases most of its items thus reaching out to millions of buyers through the internet. Other offline stores can be found in almost all suburbs and cities of some countries. These exclusive shops seal any other loophole that is left by availing Nike’s products near the consumer’s particular geographic location. The customer can thus enjoy the full ease of access to the company’s merchandises.



Nike competition in the global market

Nike has positioned itself in the worldwide market as the leading brand. It is regarded as the number 1 trademark internationally. The significance of this top position is that, over the years, the company is known to produce high-quality products and services. Also, the firm remains committed to giving its customers the value for their money (Nike Inc. 2016).

Secondly, Nike competes amply in the international market since its brand is irreplicable. In other words, the company’s commodities cannot be forged by other firms in different countries across the world. The swoosh logo, as well as Nike’s slogan, remain watermarked. This means that minimal revenues are lost through illegal businesses operating in diverse regions globally (Nike Inc. 2016).

Thirdly, Nike employs pricing strategy that is based on value. In turn, the company realizes continuous growth in profit margins and sales. In the global markets, Nike’s products have a higher price tag. This is a challenge and gap that its competitors have identified and exploted. In India, for example, there is the emergence of Bata which is a strong brand within the regional. Despite Nike’s high selling price, its revenues continue to rise. This is attributed to the assessment and application of consumer perception regarding the maximum amount of money that a customer is willing to pay for a given item (Deng 61).

Nike’s competitors

Nike’s topmost rivals in the international market include Reebok, Adidas, Li Ning, ASICS, Puma, Lululemon athletica, Under Armour, and V.F. corporation. Most of these companies concentrate on the production of similar products which include apparels, athletic footwear, as well as fitness products and equipment (Nike Inc. 2015). Concerning the market share, Nike dominates the market with a 31% lead followed by its closest rivals Adidas (16%) and Reebok (6%).

Differences between the local and external marketing strategies

Home-marketing strategiesOutside-marketing strategies

1. Focuses mainly on expanding the number of retail stores within the United States market. It also invests vastly in creating iconic Niketown stores in the major cities to enhance the customer experience.

2. The company employs exclusive offline sores to reach out to its customers in more remote areas closely.







3. In the home market, Nike outsources its product from overseas countries such as China and other developing nations such as Vietnam. These states manufacture their goods at relatively lower prices (Deng 61).



4. In the home marketplace, Nike engages mainly in television adverts, print media, billboards, and commercials to promote its items.

5. Locally, the business uses such promotional tactics as the personal sale of products and public relations. It also depends on the promotion of sales by selecting popular celebrities and athletes.

6. Nike heavily counts on its strong, established, and lasting brand power to command the market in the United States. It creates consumer trademark awareness especially through Nike’s logo and slogan.

1. Nike relies largely on licensing independent distributors and dealers to promote and sell their products in the international market. In doing so, the firm reaches a huge number of customers globally.

2. The firm relies heavily on online stores as well as the sale of Nike’s services and products through the E-commerce platform to overcome the geographical barrier and reach more countries worldwide.



3. Nike has established manufacturing units as well as operational entities in different countries like Asia where it operates. In turn, the business minimizes on running and production costs. It also provides customer services in such global units in order to maintain contact with its buyers and improve their experience.

4. In the global market, Nike employs mainly social media marketing strategies to easily reach out to its customers and promote its commodities.

5. When advertising its products, the company would most preferably endorse famous athletes or personalities who are locally recognized from a given country as Nike’s ambassadors (Peters 2010).

6. The firm depends on its enormous resources to create impact in the international market. This is made possible since most local businesses lack the funds to promote their brands.









Recommendations and conclusion

In summary, Nike has to some extent succeeded in the formulation and implementation of its marketing strategy. Additionally, the company operates in an environment characterized by high competition from such firms as Adidas and Reebok which engage in similar products. What makes Nike standout is its consistent traditions regarding its strong brand, customer relations, and innovation. On that account, I would recommend the following ideas to Nike’s marketing senior manager:

Increase social media marketing activities in promoting the company’s new products such as the recently released Nike’s 6.0 series of shoes.

Review the company’s value-based price system. I would suggest a reduction in unit prices to be at par with those of its close competitors, especially at the international scale.

Instigate diversification and invention of products to include parkour and aerobics products and reduce heavy reliance on footwear.

Encourage more acquisitions, mergers, and collaboration with other businesses to expand the firm globally while maintaining its competitiveness.

Adopt strategies that concentrate on building Nike’s relationship with its consumers such as public relation and personal sale.





References:

Deng, T. “Just Done It.” Nike’s New Advertising Plan: Facing Global Economic

Crisis. International Journal of Business and Management 2009, 4(3), 56-112

Dominici, G. From marketing mix to e-marketing mix: a literature overview and classification. International Journal of Business and Management 2011, 4(9), 17-24.

Goi, C. L. A review of marketing mix: 4Ps or more? International Journal of Marketing Studies 2009, 1(1), 2-34.

Nike Inc. Form 10-K. 2016. Extracted from:

https://www.sec.gov/Archives/edgar/data/320187/000032018715000113/nke-5312015x10k.htm

Peters, J. W. The Birth of “Just Do It” and Other Magic Words. New York Times 2010: Extracted from http://www.nytimes.com/2009/08/20/business/media/20adco.html















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